The Carolina Rubber Products Company has completed the flexible budget analysis for the second quarter,which is as given below.
- Which of the following would be a correct interpretation of the sales volume variance for sales revenues?

Question

The Carolina Rubber Products Company has completed the flexible budget analysis for the second quarter,which is as given below. 
- Which of the following would be a correct interpretation of the sales volume variance for sales revenues?

Quizplus · Accepted Answer

The sales volume variance measures the difference between the actual sales volume and the budgeted sales volume at the budgeted price per unit. Therefore, an increase in sales volume would result in a favorable sales volume variance, indicating that the company sold more than anticipated. Option A, C, and D are not relevant to the sales volume variance.

The Carolina Rubber Products Company Has Completed the Flexible Budget